Taxation of Gift

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darshit

darshit (Querist)
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15 April 2009 If Assessee receives Gift in Kind is it taxable? What should be entry for accounting Purpose?

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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15 April 2009 No, gift in kind is not taxable. Accounting entry can be made at the fair value of the object.

CMA KNVV Sri Vidya - Sri Kanth

CMA KNVV Sri Vidya - Sri Kanth (Expert)
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15 April 2009 gift in kind is not taxable.

parthasarathy

parthasarathy (Expert)
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15 April 2009 as per gift tax provisions of I.T Act.. gifts in kind are not taxable, but the receiver of the gift has to prove the routing of the gift in kind....namely the gift deed issued by the person giving the gift confirming the gift and also the source from which he has obtained the item of gift.

gift received in kind is purley capital receipt in the year of receipt. so you can show it in balance sheet opening a seperate account for it, for e.g building received in way of gift. building A/c Dr.... To Capital Account A/c (Being building received by way of gift from ...... vide deed no....dt...)

have a grt day